Technical Analysis of WTI Crude Oil
During the trading session on Thursday, the West Texas Intermediate Crude Oil market first attempted to advance before displaying signs of hesitancy. At this time, the market is beginning to consolidate around the 50-day exponential moving average, which is located at $70.67. Given sufficient time, it’s likely that the market will attempt to determine its direction in this area, which I believe will remain quite challenging. As we are near the center of a significant consolidation area, I anticipate that trading will continue to be quite challenging. The $82.50 level above represents resistance, and the $72.50 level below represents support. I believe that we continue to argue back and forth.
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Technical Assessment of Brent Crude Oil
Brent markets are extremely similar, as we are also hovering near the 50-day exponential moving average. The $90 level is a key resistance barrier, not only from a massive, round, big-number psychological perspective, but also because the 200-day exponential moving average (EMA) is located there. Instead, if we break below the bottom of the hammer from Wednesday’s session, it is feasible that we might reach the $80 level.
We are currently attempting to determine if the world economy will require more crude oil, or if we will see less demand as the global economy appears to be slowing down. In light of this, I believe you should exercise caution and wait for an impulsive candlestick before making a trading choice.
